SINGAPORE: Malaysian palm oil rose for a second consecutive session on Friday, tracking firm crude oil prices, although the market logged a weekly loss.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed 0.4% higher at 3,976 ringgit ($848.12) per metric ton. The contract has lost over 2% this week.

A lack of demand and rising supplies are likely to keep a lid on prices, said a Kuala Lumpur-based trader.

“This 3,800-4,000 ringgit trading range will continue unless we see really good demand.” Dalian’s most-active soyoil contract gained 1.8%, while its palm oil contract rose 2%. Both contracts were also down for the week.

Meanwhile, soyoil prices on the Chicago Board of Trade fell 0.5%.

Palm oil prices are influenced by the movements of related oils as they vie for a portion of the global vegetable oils market.

Oil prices were little changed after rising in the previous session as reassurances from OPEC+ members Saudi Arabia and Russia indicated readiness to pause or reverse output agreements.

Higher crude oil futures make palm a more attractive option for biodiesel feedstock.